Mauritius, the jewel in the crown of the Indian Ocean, attracts a large number of expatriates every year looking to invest in local real estate. To manage this growing interest, the Mauritian government has put in place specific laws, recently updated in the 2024-2025 budget, aimed at facilitating foreigners’ access to the real estate market while ensuring balanced and sustainable management of this sector. This guide explores the main legal provisions and new rules concerning property purchases by expatriates in Mauritius.
1: The Main Legal Provisions Concerning Real Estate Purchases by Expatriates
- Programmes spécifiques pour expatriés :
- Integrated Resort Scheme (IRS) / Real Estate Scheme (RES) / Property Development Scheme (PDS) : These programs offer luxury villas, apartments or duplex. Buying a property worth at least $375,000 in one of these programs also provides residency for the owner and family.
- Smart City Scheme : This programme enables foreigners to acquire residential properties in areas designated as “Smart Cities”, with a focus on sustainable urban development.
- Appartements en pleine propriété :
- Expats can purchase apartments in buildings with at least two floors (R+2) for a minimum of 6 million Mauritian rupees (MUR).
- This option is popular among investors who wish to acquire residential properties for personal use or for rental investment.
- Restrictions on other property types:
- Agricultural land: Foreigners are not allowed to buy agricultural land except in specific projects approved by the government.
- Properties outside of the specific regimes: Apart from the IRS, RES, PDS and Smart City programs, foreigners can only acquire residential property with a specific government approval.
2: Obtaining a Residence Permit
- Eligibility: The purchase of real estate with a minimum value of $375,000 USD in the IRS, RES, PDS or Smart City programs allows the buyer and his family to apply for a residence permit.
- Investor attraction: This residence permit is a major benefit for expatriates seeking to settle in Mauritius, thus enhancing the attractiveness of these programs for foreign investors.
3: Authorization and Purchase Process
- Approval required: All real estate purchases by foreigners must be approved by the Economic Development Board (EDB) of Mauritius.
- Compliance with local laws: This approval process ensures that transactions comply with local regulations and are aligned with the island’s development goals.
- Importance du suivi des procédures : Il est crucial pour les investisseurs de suivre ces procédures afin d’éviter tout litige ou complication future.
4: The New Provisions of the 2024 Act
- Extension of purchase options: Residents may now acquire properties outside of traditional schemes, provided the property is valued at a minimum of USD 500,000 and does not exceed 1.25 acres.
- New taxes and costs :
- An additional 10% acquisition tax is now applied to foreign real estate transactions.
- This tax is in addition to the standard 5% transfer fee, making some properties more exclusive and less accessible for foreign buyers.
5: Investor Reactions and Perspectives
- Positive reception: Many expats welcome the opening of the market and new purchasing opportunities outside of the usual patterns, thus allowing for a greater diversification of their investments.
- Financial concerns: However, the high entry cost and new taxes are perceived as financial barriers, potentially limiting access to these investments to a wealthy elite.
- Balance between attractiveness and sustainability: This reform aims to preserve Mauritius’ attractiveness for investors while ensuring sustainable management of its real estate market.
The 2024 legislation on expatriate access to the real estate market in Mauritius was designed to balance the country’s attractiveness for investors while preserving the integrity of its real estate sector. These new rules offer interesting opportunities, but also impose strict conditions to ensure sustainable and controlled market growth. For expats wishing to enjoy the benefits of real estate investment in Mauritius, it is essential to fully understand these provisions and follow procedures in order to maximize their investment in this unique Indian Ocean setting.
